The Emergence of Regtech 2.0: From Know Your Customer to Know Your Data

Arner, Douglas W.; Barberis, Jànos; Buckley, Ross P.

doi:10.2139/ssrn.3044280

Cited by 38 publications

(32 citation statements)

References 3 publications

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“…The term ''regtech'' comes from the combination of the words ''regulation'' and ''technology''. These opportunities are especially significant within the domain of KYC (see Memminger et al 2016;Arner et al 2016). Arasa and Ottichilo (2015) conduct an analysis of the cost of KYC based on the complexity level of the compliance required for the case of commercial banks in Kenya, establishing four variables that explain 78.3% of the compliance requirements.…”

Section: The Current Kyc Processmentioning

confidence: 99%

KYC Optimization Using Distributed Ledger Technology

2017

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The know-your-customer (KYC) due diligence process is outdated and generates costs of up to USD 500 million per year per bank. The authors propose a new system, based on distributed ledger technology (DLT), that reduces the costs of the core KYC verification process for financial institutions and improves the customer experience. In the proposed system, the core KYC verification process is only conducted once for each customer, regardless of the number of financial institutions with which that customer intends to work. Thanks to DLT, the result of the core KYC verification can be securely shared by customers with all the financial institutions that they intend to work with. This system allows for efficiency gains, cost reduction, improved customer experience, and increased transparency throughout the process of onboarding a customer.

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Section: The Current Kyc Processmentioning

confidence: 99%

KYC Optimization Using Distributed Ledger Technology

2017

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“…They suggest a common international approach to FinTech regulation. Arner, Barberis, and Buckley (2016b) point out that as RegTech will continue to evolve it will transform the future of financial regulation. Arner, Barberis, and Buckley (2016a) argue that RegTech so far has been focused on the digitization of manual reporting and compliance processes, which has led to cost savings for the regulators and to the industry.…”

Section: Policy and The Role Of Governmentmentioning

confidence: 99%

Fintech and the Future of Financial Services: What Are the Research Gaps?

Kavuri¹,

Milne²

2019

SSRN Journal

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New financial technologies (FinTech) have erupted around the world. Consequently, there has been a considerable increase in academic literature on FinTech over the last five years. Research tends to be scantily connected with no coherent research agenda. Significant research gaps and important questions remain. There is much work to be done before this area becomes an established academic discipline. This paper offers coherent research themes formulated through focus group meetings with policymakers and academics, and also based on a critical assessment of the literature. We outline seven key research gaps with questions that could form the basis of academic study. If these are addressed it would help this area become an established academic discipline. AbstractNew financial technologies (FinTech) have erupted around the world.Consequently, there has been a considerable increase in academic literature on FinTech over the last five years. Research tends to be scantily connected with no coherent research agenda. Significant research gaps and important questions remain. There is much work to be done before this area becomes an established academic discipline. This paper offers coherent research themes formulated through focus group meetings with policymakers and academics, and also based on a critical assessment of the literature. We outline seven key research gaps with questions that could form the basis of academic study. If these are addressed it would help this area become an established academic discipline.

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“…As institutions increased their cross-sector and jurisdictional scope, they also faced many new regulatory challenges. According to Arner, Barberis, and Buckley (2016), the first iteration of Regulatory Technology appeared through the 1980s and 2000s risk and management teams with the combination between quantitative finance and information technology reflected itself in the Value At Risk (VAR) systems in financial institutions. Software systems developed by developed by J.P Morgan, subsidiaries of Reuters and other vendors were part of a set of tools that enabled participants in the financial markets to estimate their exposure to market risk (Risk Metrics Technical Document, 1996).…”

Section: Innovation and Financial Regulationmentioning

confidence: 99%

“…As such, the overreliance in lengthy regulations led to massive compliance costs across the industry, not only for the regulated but for the regulators, as the increasing regulatory complexity requires greater granularity, precision and frequency in data reporting, aggregation and analysis (Arner, Barberis, and Buckley, 2016 (Arner, Barberis, and Buckley, 2016). According to Reuters, the number of regulatory changes a bank has to deal with every day has increased from 10 in 2004 to 185 in 2015.…”

Section: Post-crisis Reformsmentioning

confidence: 99%

“…Traditional compliance tools were and are still ill-equipped to deal with this regulatory surge (The Irish Advantage, 2018: 9). This complex and fragmented regulatory framework displayed across markets has given rise to additional compliance burdens (Arner, Barberis, and Buckley, 2016). Global policymakers push for similar post-crisis reforms, but requirements and rules for implementing these can be similar or very different, overlap and contradict, which led to the financial sector turning to Regtech for optimizing compliance management (Hill, 2016).…”

Section: Post-crisis Reformsmentioning

confidence: 99%

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Bits and Bytes of Financial Regulation: The Regtech Environment

Miguel¹,

Algarvio²

2019

IJBSS

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Since 2008, banks have spent more than €342 billion on settlements, enforcement actions, and fines, and until 2020 according to Reuters this value is expected to rise to €400 billion. As a result, technological solutions were implemented to help financial institutions deal with the increasing compliance burden and regulators addressing the constant difficulties of enforcing and monitoring regulatory requirements to limit risks and promote financial stability. This led to the emergence of a whole new movement in the Financial Industry: Regulatory Technology or Regtech. The aim of this paper is to explain the Regtech environment in the financial sector. We highlight how technology can help financial institutions dealing with risky behavior and regulatory demands in the most efficient and cost-effective way.

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The Emergence of Regtech 2.0: From Know Your Customer to Know Your Data

Cited by 38 publications

References 3 publications

KYC Optimization Using Distributed Ledger Technology

KYC Optimization Using Distributed Ledger Technology

Fintech and the Future of Financial Services: What Are the Research Gaps?

Bits and Bytes of Financial Regulation: The Regtech Environment

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